Cash is no longer king in today’s world, which is concerning to some but actually makes a lot of sense alongside the advancement of technology. Consumers have been increasingly using their debit and credit cards over the past 20 years. According to marketwatch.com, consumers all over the world will have spent $1.4 Trillion more in credit that they will have in cash by the end of 2016. Apparently debit card use has increased by 8% and credit by 5%.
This shift towards card use has come about due to a number of reasons, but mainly because it’s become much easier to make purchases online and through apps. If you’ve ever used the Starbucks app, this is a great example. With literally the touch of a button you can reload your card, and a couple more clicks, pre-order your drink to be made and by the time you get to Starbucks. Skipping all the inconveniences of standing in line, fumbling around with the interac machine and if you’re not a morning person, avoiding talking to anyone until after you’ve had your coffee.
The older people are, the more likely they are to use cash – according to creditcards.com. Which, as a trend, means that we will likely see a constant increase in the use of debit/credit cards, using electronic payment methods. The quick and convenient nature of them is definitely a selling point. You can literally make a payment from anywhere, anytime – and as our lives are becoming more and more busy, this trend only makes sense.
Another reason why we’re seeing more people using credit/debit cards is that it’s a lot easier to track finances, making it ideal for accounting purposes. With cash, it’s a lot tougher to track what you’ve spent and where. Most banks offer useful apps and websites which track your spending for you when you use a card, making budgeting way easier.
People are sometimes scared about their financial security when using debit and credit cards, which is fair, but in reality – it’s usually much safer. If your cash disappears, there’s really no way of getting it back. But if your debit or credit card information gets stolen and used, sure it’s a pain, but you’re usually reimbursed.
Many are also really fond of the rewards points programs their banks offer. People earn flying miles and other rewards for their money spent. So, in a sense there is an opportunity there to make money from spending money. Some Governments have even started putting incentives in place for people to start using debit and credit cards in an attempt to reduce illegal transactions (which are usually made in cash for obvious reasons).
Here at RentMoola we’re fully on board with the transition over to credit and debit. We’ve created a system which people can use to pay their rent online and reap all of the above benefits. As more and more people switch from cash to debit and credit, a platform like ours will be an integral part of the rental market. Our platform offers a way to collect and easily manage rental payments – while also offering tenants incentives to do so, which is the way of the future. Check out rentmoola.com/managers for more info.